Web 2.0 Weekly - July 20, 2010: "DST Cashing Up"David Shore
Large deals drive July financing to near record levels: With another huge financing (DST - see below) July financing is near record monthly levels. Total raised month-to-date is $742.6 million over 29 deals - averaging $25.6 million each. Excluding the Zynga ($100 million) and DST ($388 million) deals, the average deal size is $9.4 million. In comparison, total capital raised in July 2009 was $209.0 million, averaging $5.2 million over 40 deals. The monthly median total is ~$280 million with a median deal size of $8.1 million.
Deals (M&A, Finance)
Naspers, a South African media and print conglomerate, invested $388 mm in Digital Sky Technologies, the Russian digital media holding company with significant stakes in Facebook, Groupon, Mail.ru, and Zynga.
The next biggest raise of the week was Australian enterprise software developer, Atlassian, receiving $60 mm in Series A funds from Accel Partners.
Social Commerce continues to garner attention – this week BlueSwarm ($0.8 mm angel round) and Shopkick ($15 mm Series B round) raised money.
Another $31 mm in venture funds found their way to Advertising-related start-ups, including Israel-based Adsmarket ($17 mm), as well as a pair of India-based companies – Komli Media ($6 mm) and InMobi ($8 mm).
Price performance split
The Web 2.0 public company universe was split this week, with 48% of companies seeing their market cap fall vs. 43% rising and 9% flat.
April 2010 a record month for Web 2.0 Financing: Total transaction value (excluding M&A) in the Web 2.0 universe for April was $808.2 million - the highest monthly total we have recorded. The number of financings was also a record, at 48, averaging $16.8 million each. Note that this includes the $300 million investment in DST by Tencent. Excluding this transaction, the average is $9.6 million. In comparison, total capital raised in March was $168.1 million, averaging $5.4 million over 31 deals.
Deal round-up for April: The large deal highlights for the month include:
Tencent invested $300mm in DST (investor in Facebook, Zynga, Groupon).
Apple acquired Siri, a mobile local search developer for a rumoured $225 mm.
DST acquired ICQ, the instant messaging company, for $187.5 mm.
Warner Bros. acquired gaming company, Turbine, for $160 mm.
DST invested $135mm in social-shopping service Groupon.
Salesforce.com acquired crowd-sourced personal contact service, Jigsaw, for $142 mm.
Ankeena Networks, media infrastructure solution provider was acquired by Juniper for $100mm.
Bearish week: Price performance was largely negative in our Web 2.0 universe, with prices dropping for over 60% of the companies.
Web 2.0 Weekly - June 22, 2010: "AOL Sells Bebo for Massive Loss"David Shore
Deals (M&A, Finance)
AOL is reported to have sold Bebo, the UK-based social network it bought just two years ago for $850 mm, to private equity firm Criterion Partners for under $10 mm. Based on our calculations, AOL paid the equivalent of $38 per Unique Visitor (UV) for Bebo, and sold it for under $1 per UV.
Positive price performance
The Web 2.0 public company universe rose again this week, with 60% of companies seeing their market cap rise vs. 33% falling and 7% flat.
June financing well ahead of average: Financing in the Web 2.0 universe in June was the third highest month (over the past 12) with total transaction value (excluding M&A) of $459.6 million from 51 transactions, averaging $9.0 million each - led by the $147 million Zynga financing. In comparison, total capital raised in June 2009 was $226.3 million, averaging $4.5 million over 50 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$260 million.
Deals (M&A, Finance)
Alloy, a provider of news and commentary concerning New Media, was acquired by ZelnickMedia for $127 mm.
Facebook’s implied valuation rose to $24 bn as Elevation Partners purchased 5 mm shares of the company for $120 mm in the secondary market.
Danish Skype competitor, Vopium, received $16.5 mm in financing from Indian financier, Raghuvinder Kataria.
Social networking software developer based in France, Pearltrees, raised $1.6 mm.
PapayaMobile, mobile application software company based in China, raised $4 mm.
Two Israeli mobile developers received funding this week, including Perfecto Mobile ($4 mm) and Snaptu ($6 mm).
Negative price performance
The Web 2.0 public company universe fell this week, with 68% of companies seeing their market cap fall vs. 25% rising and 7% flat.
Web 2.0 Weekly - May 26, 2010: "Market Declines Impact Web 2.0 Universe Valua...David Shore
May tracking to average monthly levels: After a slow start to the month, financing in the Web 2.0 universe has rebounded and is now on track with prior months. Total transaction value (excluding M&A) in the Web 2.0 universe for May (month-to-date) is $189.9 million from 30 transactions, averaging $6.3 million each. In comparison, total capital raised in May 2009 was $375.0 million, averaging $12.5 million over 30 deals. Excluding May 09, Dec 09 and Apr 10, the average monthly total is $212 million.
Deals (M&A, Finance)
Cyberplex (TSX:CX) announced plans to acquire Tsavo Media for US$75.6 mm, partially funded through a C$30 mm bought deal financing at $0.55.
Online gaming company Gaikai, raised $10.0 mm in Series B financing.
Blip.TV, online TV provider, raised $10.1 mm in Series C financing.
Financial Results/Guidance
Netease.com (NasdaqGS:NTES, online gaming) reported Q1/F10 revenue of RMB 1.2 bn (vs. RMB 781.7 mm in the same period last year).
Snap Interactive (OTCBB:STVI, online dating) reported Q1/F10 revenue growth of 20% to $0.927 mm from $0.768 mm.
Bearish week again: Price performance was largely negative in our Web 2.0 universe. This impacted valuation multiples, which fell for ~80% of the companies in our universe.
Web 2.0 Weekly - Aug. 4, 2010: "Playdom is going to Disney World"David Shore
Deals (M&A, Finance) – Disney Gets In To Social/Mobile Video Games
Disney acquired social and mobile game developer, Playdom, for $563 mm in upfront consideration and the potential for $200 mm in further earn-out based consideration. Disney management notes that the company continues to be on the acquisition war path.
The largest deals in the week involved (wait for it…) the advertising sector, with $15 mm in follow-on financings to eXelate and AdMeld, and $8 mm to BuzzLogic.
Four different social network/media companies received financing in the week, including, Hot Potato (acquired for $10 mm by Facebook), PlacePop ($1.4 mm round), Rapportive ($1 mm seed round), and dating site, Triangulate ($0.75 seed round).
Price Performance - Web 2.0 Valuation Reverse Course and Head Upward
The Web 2.0 public company universe was positive this week with 47% of stocks rising, 46% falling, and 7% flat.
Web 2.0 Weekly - July 27, 2010: "July Financings - Approaching High for 2010"David Shore
Deals (M&A, Finance)
Jive Software received the biggest investment of the week at $30 mm, bringing its total capital raised to date to $57 mm – the company brings social network-like functions to the realm of enterprise collaboration.
Advertising networks continue to receive the most attention among sectors we track – this week, $24.6 mm in financings were announced, including sports-related ad network Sportgenic (acquired by Glam Media for $12 mm), and TurnHere ($12.6mm in Series B funds).
Rumour alert – we continue to hear more frequent buzz concerning the potential acquisition of social gaming developer Playdom by Disney.
Synchronica (AIM:SYNC) intends to acquire iseemedia (TSXV:IEE) for C$8.8 mm in stock – both companies are engaged in mobile communications development, such as email-to-SMS.
Price performance turns positive
The Web 2.0 public company universe was positive this week, with 54% of companies seeing their market cap rise vs. 34% falling and 12% flat.
Web 2.0 Weekly - July 20, 2010: "DST Cashing Up"David Shore
Large deals drive July financing to near record levels: With another huge financing (DST - see below) July financing is near record monthly levels. Total raised month-to-date is $742.6 million over 29 deals - averaging $25.6 million each. Excluding the Zynga ($100 million) and DST ($388 million) deals, the average deal size is $9.4 million. In comparison, total capital raised in July 2009 was $209.0 million, averaging $5.2 million over 40 deals. The monthly median total is ~$280 million with a median deal size of $8.1 million.
Deals (M&A, Finance)
Naspers, a South African media and print conglomerate, invested $388 mm in Digital Sky Technologies, the Russian digital media holding company with significant stakes in Facebook, Groupon, Mail.ru, and Zynga.
The next biggest raise of the week was Australian enterprise software developer, Atlassian, receiving $60 mm in Series A funds from Accel Partners.
Social Commerce continues to garner attention – this week BlueSwarm ($0.8 mm angel round) and Shopkick ($15 mm Series B round) raised money.
Another $31 mm in venture funds found their way to Advertising-related start-ups, including Israel-based Adsmarket ($17 mm), as well as a pair of India-based companies – Komli Media ($6 mm) and InMobi ($8 mm).
Price performance split
The Web 2.0 public company universe was split this week, with 48% of companies seeing their market cap fall vs. 43% rising and 9% flat.
April 2010 a record month for Web 2.0 Financing: Total transaction value (excluding M&A) in the Web 2.0 universe for April was $808.2 million - the highest monthly total we have recorded. The number of financings was also a record, at 48, averaging $16.8 million each. Note that this includes the $300 million investment in DST by Tencent. Excluding this transaction, the average is $9.6 million. In comparison, total capital raised in March was $168.1 million, averaging $5.4 million over 31 deals.
Deal round-up for April: The large deal highlights for the month include:
Tencent invested $300mm in DST (investor in Facebook, Zynga, Groupon).
Apple acquired Siri, a mobile local search developer for a rumoured $225 mm.
DST acquired ICQ, the instant messaging company, for $187.5 mm.
Warner Bros. acquired gaming company, Turbine, for $160 mm.
DST invested $135mm in social-shopping service Groupon.
Salesforce.com acquired crowd-sourced personal contact service, Jigsaw, for $142 mm.
Ankeena Networks, media infrastructure solution provider was acquired by Juniper for $100mm.
Bearish week: Price performance was largely negative in our Web 2.0 universe, with prices dropping for over 60% of the companies.
Web 2.0 Weekly - June 22, 2010: "AOL Sells Bebo for Massive Loss"David Shore
Deals (M&A, Finance)
AOL is reported to have sold Bebo, the UK-based social network it bought just two years ago for $850 mm, to private equity firm Criterion Partners for under $10 mm. Based on our calculations, AOL paid the equivalent of $38 per Unique Visitor (UV) for Bebo, and sold it for under $1 per UV.
Positive price performance
The Web 2.0 public company universe rose again this week, with 60% of companies seeing their market cap rise vs. 33% falling and 7% flat.
June financing well ahead of average: Financing in the Web 2.0 universe in June was the third highest month (over the past 12) with total transaction value (excluding M&A) of $459.6 million from 51 transactions, averaging $9.0 million each - led by the $147 million Zynga financing. In comparison, total capital raised in June 2009 was $226.3 million, averaging $4.5 million over 50 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$260 million.
Deals (M&A, Finance)
Alloy, a provider of news and commentary concerning New Media, was acquired by ZelnickMedia for $127 mm.
Facebook’s implied valuation rose to $24 bn as Elevation Partners purchased 5 mm shares of the company for $120 mm in the secondary market.
Danish Skype competitor, Vopium, received $16.5 mm in financing from Indian financier, Raghuvinder Kataria.
Social networking software developer based in France, Pearltrees, raised $1.6 mm.
PapayaMobile, mobile application software company based in China, raised $4 mm.
Two Israeli mobile developers received funding this week, including Perfecto Mobile ($4 mm) and Snaptu ($6 mm).
Negative price performance
The Web 2.0 public company universe fell this week, with 68% of companies seeing their market cap fall vs. 25% rising and 7% flat.
Web 2.0 Weekly - May 26, 2010: "Market Declines Impact Web 2.0 Universe Valua...David Shore
May tracking to average monthly levels: After a slow start to the month, financing in the Web 2.0 universe has rebounded and is now on track with prior months. Total transaction value (excluding M&A) in the Web 2.0 universe for May (month-to-date) is $189.9 million from 30 transactions, averaging $6.3 million each. In comparison, total capital raised in May 2009 was $375.0 million, averaging $12.5 million over 30 deals. Excluding May 09, Dec 09 and Apr 10, the average monthly total is $212 million.
Deals (M&A, Finance)
Cyberplex (TSX:CX) announced plans to acquire Tsavo Media for US$75.6 mm, partially funded through a C$30 mm bought deal financing at $0.55.
Online gaming company Gaikai, raised $10.0 mm in Series B financing.
Blip.TV, online TV provider, raised $10.1 mm in Series C financing.
Financial Results/Guidance
Netease.com (NasdaqGS:NTES, online gaming) reported Q1/F10 revenue of RMB 1.2 bn (vs. RMB 781.7 mm in the same period last year).
Snap Interactive (OTCBB:STVI, online dating) reported Q1/F10 revenue growth of 20% to $0.927 mm from $0.768 mm.
Bearish week again: Price performance was largely negative in our Web 2.0 universe. This impacted valuation multiples, which fell for ~80% of the companies in our universe.
Web 2.0 Weekly - Aug. 4, 2010: "Playdom is going to Disney World"David Shore
Deals (M&A, Finance) – Disney Gets In To Social/Mobile Video Games
Disney acquired social and mobile game developer, Playdom, for $563 mm in upfront consideration and the potential for $200 mm in further earn-out based consideration. Disney management notes that the company continues to be on the acquisition war path.
The largest deals in the week involved (wait for it…) the advertising sector, with $15 mm in follow-on financings to eXelate and AdMeld, and $8 mm to BuzzLogic.
Four different social network/media companies received financing in the week, including, Hot Potato (acquired for $10 mm by Facebook), PlacePop ($1.4 mm round), Rapportive ($1 mm seed round), and dating site, Triangulate ($0.75 seed round).
Price Performance - Web 2.0 Valuation Reverse Course and Head Upward
The Web 2.0 public company universe was positive this week with 47% of stocks rising, 46% falling, and 7% flat.
Web 2.0 Weekly - July 27, 2010: "July Financings - Approaching High for 2010"David Shore
Deals (M&A, Finance)
Jive Software received the biggest investment of the week at $30 mm, bringing its total capital raised to date to $57 mm – the company brings social network-like functions to the realm of enterprise collaboration.
Advertising networks continue to receive the most attention among sectors we track – this week, $24.6 mm in financings were announced, including sports-related ad network Sportgenic (acquired by Glam Media for $12 mm), and TurnHere ($12.6mm in Series B funds).
Rumour alert – we continue to hear more frequent buzz concerning the potential acquisition of social gaming developer Playdom by Disney.
Synchronica (AIM:SYNC) intends to acquire iseemedia (TSXV:IEE) for C$8.8 mm in stock – both companies are engaged in mobile communications development, such as email-to-SMS.
Price performance turns positive
The Web 2.0 public company universe was positive this week, with 54% of companies seeing their market cap rise vs. 34% falling and 12% flat.
Summer financing doldrums: After a very strong June (with total transaction value (excluding M&A) of $542.8 million from 66 transactions, averaging $8.4 million each), July has started very slowly with only one small financing announced. However, we have seen some large M&A transactions (see below). In comparison, total capital raised in July 2009 was $206.2 million, averaging $5.4 million over 38 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$270 million.
Deals (M&A, Finance)
Google, acquired ITA Software, search provider for the travel industry for $700 mm.
infoGROUP, provider of business and consumer databases for sales leads, mailing lists, direct marketing, database marketing, e-mail marketing, and marketing research solutions, was taken private for $645 mm by CCMP Capital Advisers.
GroupSpaces, a provider of web-based tools for sports clubs, university societies, organizations, and groups of friends or coworkers, raised $1.3 mm.
Domain based online advertising services provider, OCTANE360, was acquired by Local.com for $10.9 mm.
Negative price performance
The Web 2.0 public company universe fell again this week, with 61% of companies seeing their market cap fall vs. 27% rising and 12% flat.
April on track to be record month?: Total transaction value in the Web 2.0 universe April-to-date is $726.1 million. The number of financings stands at 40 averaging $18.2 million each. Note that this includes the $300 million investment in DST by Tencent. Even excluding this transaction, the average is $15.2 million. In comparison, total capital raised in March was $168.1 million, averaging $5.4 million over 31 deals. The highest monthly total in our Web 2.0 financing database was April 2008 with a total of $765.5 million raised in 47 transactions.
Deal round-up for April: The large deal highlights for the month include:
§
•Tencent invested $300mm in DST (investor in Facebook, Zynga, Groupon).
DST invested $135mm in social-shopping service Groupon.
Salesforce.com acquired crowd-sourced personal contact service, Jigsaw, for $142 mm.
•Warner Bros. acquired gaming company, Turbine, for $160 mm.
•Ankeena Networks, media infrastructure solution provider was acquired by Juniper for $100mm.
Bullish week for Web 2.0: Sixty-nine percent of the companies in our universe had increased or flat market caps over the past week, sixty-nine percent had increased EV/Revenue multiples, 75% had increased or flat EV/EBITDA multiples and 73% had increased or flat P/E mutliples .
Google/Zynga deal drives July financing results: After starting very slowly (just one deal announced in the prior week) July financing increased substantially as a result of the Google/Zynga financing ($100-200 million). Total raised month-to-date is $158.8 million over 12 deals - averaging $13.2 million each. In comparison, total capital raised in July 2009 was $206.5 million, averaging $5.3 million over 39 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$280 million.
Deals (M&A, Finance)
Google invested a rumoured $100-$200 mm in social game developer, Zynga, bringing that company’s total funding to almost $500 mm (assuming the lower end of the range).
The Gaming sector remains hot – along with Google’s investment in Zynga, The9 Ltd. (Chinese online game developer and operator) invested $5 mm in Delaware-based Aurora Feint (focused on gaming for the mobile space).
A triad of financings in the Social Commerce space this week, including Beyond the Rack ($12 mm), ThredUP ($1.7 mm), and BuyWithMe ($16 mm in a Series B financing).
Sysomos, Canadian social media monitoring firm, was acquired by MarketWire for between $25 mm and $35 mm.
Price performance turns positive
The Web 2.0 public company universe rose this week, with 58% of companies seeing their market cap rise vs. 32% rising and 10% flat.
Month-to-date financings in May totalled $106.6 million; led by the $20
million One Net financing. So far, there have been 18 financings in May,
with 10 deals greater than $5 million and only five less than $5 million.
There have been two financings greater than $10 million (Cyberplex and One
Net), with the capital raises by Imeem and EveryZing close behind at $8.8
million and $8.3 million, respectively. The average value thus far in May is
$5.9 million, slightly below the average value for April of $6.5 million on
21 financings. The March average was $6.6 million on 24 financings. Except
for two deals (Kaixin001.com and Collective Media), all were below $20
million for the last three months and a total of four deals were greater
than or equal to $15 million.
*One Net’s $20 million financing is largest deal in May: *One Net announced
a $20 million financing last week, the largest deal so far in May. Ten of
the 18 deals in the month are equal to or greater than $5 million. For
additional details, see Figures 23 and 24 (at end of note). Also note that
the spin-off of StumbleUpon from E-bay on a $29 million valuation occurred
in May. E-bay had bought StumbleUpon for $75 million.
*A strong price performance week: *The companies in our universe had
relatively strong stock price performances over the past week (for stocks
with prices greater than $1) (Figure 6), with 31 companies showing positive
returns on the week. OpenWave Systems (NASDQ:OPWV) led the group with a
49.2% return, while DigitalTown (OTCBB:DGTW) had the worst return, dropping
35.0% in the week.
Web 2.0 Weekly - Aug. 10, 2010: "Consolidation by Google"David Shore
Deals (M&A, Finance) – Consolidation by Google
Google confirmed or announced two acquisitions during the week, including Jambool
($70 mm) involved in virtual goods monetization processes, and widget market, Slide
($182 mm).
In other acquisition-related news, Forbes sold investment media website Investopedia to ValueClick for $42 mm. Zynga acquired Japanese mobile app and game developer,
Unoh, for an estimated $29 mm. Finally, dubbed “the Spanish Facebook,” social
networking site, Tuenti, was acquired by Telefonica in a $99 mm deal.
The largest financing (aside from the aforementioned M&A activity) involved “the
Chinese Youtube,” Tudou, raising $50 mm in Series E funds.
Price Performance
Distinctly negative price momentum, with 49% of stocks falling over the past week (after 48% of stocks declines last week, and 51% declined the week prior).
Slow start in May after record April: Total transaction value (excluding M&A) in the Web 2.0 universe for April was $813.5 million - the highest monthly total we have recorded. The number of financings was also a record, at 49, averaging $16.6 million each. Note that this includes the $300 million investment in DST by Tencent. Excluding this transaction, the average is $10.7 million. May 2010, in contrast, has started slowly, with only $37.4 million in financing announced thus far, averaging just $3.4 million across 11 deals. In comparison, total capital raised in May 2009 was $375.0 million, averaging $12.5 million over 30 deals.
Deal round-up for May: The large deal highlights for the month include:
Fluid Music (TSX:FMN, digital music distributor) will acquire Mood Media (provider of sensorial marketing solutions) for €160 mm.
Lithium is purchasing analytics developer, Scout Labs, for $20 mm.
Fatfoogoo (purveyor of virtual goods) is being acquired by Digital River for $10 mm.
Groupalia, the Spanish answer to online group discount retailers, Groupon and LivingSocial, raised $2.5 mm in a Series A financing – the online group discounters have been raising money quickly (DST invested $135 mm in Groupon in April) with a total of $222 mm in funding coming to just these three players thus far.
Bearish week again: Price performance was largely negative in our Web 2.0 universe, with prices dropping for over 70% of the companies.
LATTER HALF OF 2009: FORGING FORWARD
DEAL VALUE ON PACE TO MEET NOVEMBER LEVEL
December starts at strong pace: Total transaction value in the Web 2.0 universe for the first week of December is $68.8 million. The number of financings stands at seven, averaging $9.8 million each. In comparison, total capital raised in November was $203.4 million, averaging $11.3 million (18 deals); October was $171.3 million, averaging $6.3 million (27 deals); and September was $232.8 million, averaging $9.0 million (26 deals).
Broad-based sector financing: Video, Gaming, Advertising, Collaboration, and Analytics experienced the most financing activity among our Web 2.0 sector categories in the past three months by number of transactions (six each). Social Networks remain strong with five deals in the past quarter. Infrastructure and Search round out the top three positions at four deals each over the past three months. The $400 million acquisition of Playfish skews the Virtual Worlds segment to the highest total.
Market pull-back abates – universe split between risers and decliners: Twenty-five companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1), while 22 companies showed negative 1-week returns.
Mobile / Mobile Apps - Presentation by Ragnar Kruse, Founder & CEO of Smaato at the NOAH 2012 Conference in San Francisco, Four Seasons Hotel on the 26th of June. www.noah-conference.com
The fourth week of April had only a marginal number of capital raises (four)
and not enough to push the month above March and February levels. Total
financings (month-to-date) were $102.3 million, with February and March
closing off at $185.5 mm and $159.5 mm, respectively. As of last week, a
total of 16 deals closed, with the $20 million raise by Collective Media and
$16 million by GOOM Radio being major contributors. Most of the companies in
our universe had positive stock price performances over the past week (for
stocks with prices greater than $1), with 22 companies showing positive
returns on the week. Modern Times Group Mtg AB (MTG B-OM) led the group with
a 27.7% return, while DigitalTown Inc. (DGTW-OTCBB) had the worst return,
dropping 21.7% in the week. Two companies had better than 20% price
increases last week.
Financing activity continued to ramp up in April after a slow start to the month. Total financings (month-to-date) jumped to $92.2 million (this week) from $66.3 million (last week) – a significant +40%. As of last week, a total of 12 deals closed, with a $16 million raise by GOOM Radio being a major contributor. A total of four deals greater than $10 million each helped the overall statistics. Social Networking company DigitalTown Inc. (DGTW-OTCBB) was the top price performer for the week, returning 20%, closely followed by Kingsoft Co. Ltd. (3888-EHK) at 17.6%. The9 Ltd. (NCTY-NasdaqGS) had the worst return, dropping 27.6% in the week after news of its losing the license to operate World of Warcraft in China. Of the 34 companies (with stock price greater than $1), 10 companies on our list had price performances greater than +10%. Only one company returned more than
20%.
New royalty agreement for webcasting & copyright firms: SoundExchange, a nonprofit royalty collecting organization associated with the Recording Industry Association of America (RIAA) agreed this past week to a new deal regarding royalty rates for webcasting. Under the new agreement, large commercial webcasters will pay up to 25% of their revenue to copyright holders – well below the 70% that could have been imposed under an earlier deal. While the deal was initially agreed to by three smaller Internet radio webcasters, Pandora Media, the third largest radio site (according to Alexa), also indicated it would sign on to the agreement.
Online Media companies lead financing: Two online media companies – Pandora (Internet Radio) and QuickPlay (Mobile Video) have secured the largest financing transactions thus far in July ($35 million and $12 million respectively). Total capital raised so far in July is $66.1 million through eight transactions, averaging $8.3 million per transaction. June closed with $180 million in financing on 36 transactions. The averages for the months of May (excluding the Facebook transaction) and June were $6.4 million and $4.7 million, respectively.
A weak price performance week: The companies in our universe had weak stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 30 companies showing negative returns on the week. Gravity (NasdaqGM: GRVY) led the group with a 33% return, while GungHo (3765-OSE) had the worst return, dropping 26.4% in the week.
Summer financing doldrums: After a very strong June (with total transaction value (excluding M&A) of $542.8 million from 66 transactions, averaging $8.4 million each), July has started very slowly with only one small financing announced. However, we have seen some large M&A transactions (see below). In comparison, total capital raised in July 2009 was $206.2 million, averaging $5.4 million over 38 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$270 million.
Deals (M&A, Finance)
Google, acquired ITA Software, search provider for the travel industry for $700 mm.
infoGROUP, provider of business and consumer databases for sales leads, mailing lists, direct marketing, database marketing, e-mail marketing, and marketing research solutions, was taken private for $645 mm by CCMP Capital Advisers.
GroupSpaces, a provider of web-based tools for sports clubs, university societies, organizations, and groups of friends or coworkers, raised $1.3 mm.
Domain based online advertising services provider, OCTANE360, was acquired by Local.com for $10.9 mm.
Negative price performance
The Web 2.0 public company universe fell again this week, with 61% of companies seeing their market cap fall vs. 27% rising and 12% flat.
April on track to be record month?: Total transaction value in the Web 2.0 universe April-to-date is $726.1 million. The number of financings stands at 40 averaging $18.2 million each. Note that this includes the $300 million investment in DST by Tencent. Even excluding this transaction, the average is $15.2 million. In comparison, total capital raised in March was $168.1 million, averaging $5.4 million over 31 deals. The highest monthly total in our Web 2.0 financing database was April 2008 with a total of $765.5 million raised in 47 transactions.
Deal round-up for April: The large deal highlights for the month include:
§
•Tencent invested $300mm in DST (investor in Facebook, Zynga, Groupon).
DST invested $135mm in social-shopping service Groupon.
Salesforce.com acquired crowd-sourced personal contact service, Jigsaw, for $142 mm.
•Warner Bros. acquired gaming company, Turbine, for $160 mm.
•Ankeena Networks, media infrastructure solution provider was acquired by Juniper for $100mm.
Bullish week for Web 2.0: Sixty-nine percent of the companies in our universe had increased or flat market caps over the past week, sixty-nine percent had increased EV/Revenue multiples, 75% had increased or flat EV/EBITDA multiples and 73% had increased or flat P/E mutliples .
Google/Zynga deal drives July financing results: After starting very slowly (just one deal announced in the prior week) July financing increased substantially as a result of the Google/Zynga financing ($100-200 million). Total raised month-to-date is $158.8 million over 12 deals - averaging $13.2 million each. In comparison, total capital raised in July 2009 was $206.5 million, averaging $5.3 million over 39 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$280 million.
Deals (M&A, Finance)
Google invested a rumoured $100-$200 mm in social game developer, Zynga, bringing that company’s total funding to almost $500 mm (assuming the lower end of the range).
The Gaming sector remains hot – along with Google’s investment in Zynga, The9 Ltd. (Chinese online game developer and operator) invested $5 mm in Delaware-based Aurora Feint (focused on gaming for the mobile space).
A triad of financings in the Social Commerce space this week, including Beyond the Rack ($12 mm), ThredUP ($1.7 mm), and BuyWithMe ($16 mm in a Series B financing).
Sysomos, Canadian social media monitoring firm, was acquired by MarketWire for between $25 mm and $35 mm.
Price performance turns positive
The Web 2.0 public company universe rose this week, with 58% of companies seeing their market cap rise vs. 32% rising and 10% flat.
Month-to-date financings in May totalled $106.6 million; led by the $20
million One Net financing. So far, there have been 18 financings in May,
with 10 deals greater than $5 million and only five less than $5 million.
There have been two financings greater than $10 million (Cyberplex and One
Net), with the capital raises by Imeem and EveryZing close behind at $8.8
million and $8.3 million, respectively. The average value thus far in May is
$5.9 million, slightly below the average value for April of $6.5 million on
21 financings. The March average was $6.6 million on 24 financings. Except
for two deals (Kaixin001.com and Collective Media), all were below $20
million for the last three months and a total of four deals were greater
than or equal to $15 million.
*One Net’s $20 million financing is largest deal in May: *One Net announced
a $20 million financing last week, the largest deal so far in May. Ten of
the 18 deals in the month are equal to or greater than $5 million. For
additional details, see Figures 23 and 24 (at end of note). Also note that
the spin-off of StumbleUpon from E-bay on a $29 million valuation occurred
in May. E-bay had bought StumbleUpon for $75 million.
*A strong price performance week: *The companies in our universe had
relatively strong stock price performances over the past week (for stocks
with prices greater than $1) (Figure 6), with 31 companies showing positive
returns on the week. OpenWave Systems (NASDQ:OPWV) led the group with a
49.2% return, while DigitalTown (OTCBB:DGTW) had the worst return, dropping
35.0% in the week.
Web 2.0 Weekly - Aug. 10, 2010: "Consolidation by Google"David Shore
Deals (M&A, Finance) – Consolidation by Google
Google confirmed or announced two acquisitions during the week, including Jambool
($70 mm) involved in virtual goods monetization processes, and widget market, Slide
($182 mm).
In other acquisition-related news, Forbes sold investment media website Investopedia to ValueClick for $42 mm. Zynga acquired Japanese mobile app and game developer,
Unoh, for an estimated $29 mm. Finally, dubbed “the Spanish Facebook,” social
networking site, Tuenti, was acquired by Telefonica in a $99 mm deal.
The largest financing (aside from the aforementioned M&A activity) involved “the
Chinese Youtube,” Tudou, raising $50 mm in Series E funds.
Price Performance
Distinctly negative price momentum, with 49% of stocks falling over the past week (after 48% of stocks declines last week, and 51% declined the week prior).
Slow start in May after record April: Total transaction value (excluding M&A) in the Web 2.0 universe for April was $813.5 million - the highest monthly total we have recorded. The number of financings was also a record, at 49, averaging $16.6 million each. Note that this includes the $300 million investment in DST by Tencent. Excluding this transaction, the average is $10.7 million. May 2010, in contrast, has started slowly, with only $37.4 million in financing announced thus far, averaging just $3.4 million across 11 deals. In comparison, total capital raised in May 2009 was $375.0 million, averaging $12.5 million over 30 deals.
Deal round-up for May: The large deal highlights for the month include:
Fluid Music (TSX:FMN, digital music distributor) will acquire Mood Media (provider of sensorial marketing solutions) for €160 mm.
Lithium is purchasing analytics developer, Scout Labs, for $20 mm.
Fatfoogoo (purveyor of virtual goods) is being acquired by Digital River for $10 mm.
Groupalia, the Spanish answer to online group discount retailers, Groupon and LivingSocial, raised $2.5 mm in a Series A financing – the online group discounters have been raising money quickly (DST invested $135 mm in Groupon in April) with a total of $222 mm in funding coming to just these three players thus far.
Bearish week again: Price performance was largely negative in our Web 2.0 universe, with prices dropping for over 70% of the companies.
LATTER HALF OF 2009: FORGING FORWARD
DEAL VALUE ON PACE TO MEET NOVEMBER LEVEL
December starts at strong pace: Total transaction value in the Web 2.0 universe for the first week of December is $68.8 million. The number of financings stands at seven, averaging $9.8 million each. In comparison, total capital raised in November was $203.4 million, averaging $11.3 million (18 deals); October was $171.3 million, averaging $6.3 million (27 deals); and September was $232.8 million, averaging $9.0 million (26 deals).
Broad-based sector financing: Video, Gaming, Advertising, Collaboration, and Analytics experienced the most financing activity among our Web 2.0 sector categories in the past three months by number of transactions (six each). Social Networks remain strong with five deals in the past quarter. Infrastructure and Search round out the top three positions at four deals each over the past three months. The $400 million acquisition of Playfish skews the Virtual Worlds segment to the highest total.
Market pull-back abates – universe split between risers and decliners: Twenty-five companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1), while 22 companies showed negative 1-week returns.
Mobile / Mobile Apps - Presentation by Ragnar Kruse, Founder & CEO of Smaato at the NOAH 2012 Conference in San Francisco, Four Seasons Hotel on the 26th of June. www.noah-conference.com
The fourth week of April had only a marginal number of capital raises (four)
and not enough to push the month above March and February levels. Total
financings (month-to-date) were $102.3 million, with February and March
closing off at $185.5 mm and $159.5 mm, respectively. As of last week, a
total of 16 deals closed, with the $20 million raise by Collective Media and
$16 million by GOOM Radio being major contributors. Most of the companies in
our universe had positive stock price performances over the past week (for
stocks with prices greater than $1), with 22 companies showing positive
returns on the week. Modern Times Group Mtg AB (MTG B-OM) led the group with
a 27.7% return, while DigitalTown Inc. (DGTW-OTCBB) had the worst return,
dropping 21.7% in the week. Two companies had better than 20% price
increases last week.
Financing activity continued to ramp up in April after a slow start to the month. Total financings (month-to-date) jumped to $92.2 million (this week) from $66.3 million (last week) – a significant +40%. As of last week, a total of 12 deals closed, with a $16 million raise by GOOM Radio being a major contributor. A total of four deals greater than $10 million each helped the overall statistics. Social Networking company DigitalTown Inc. (DGTW-OTCBB) was the top price performer for the week, returning 20%, closely followed by Kingsoft Co. Ltd. (3888-EHK) at 17.6%. The9 Ltd. (NCTY-NasdaqGS) had the worst return, dropping 27.6% in the week after news of its losing the license to operate World of Warcraft in China. Of the 34 companies (with stock price greater than $1), 10 companies on our list had price performances greater than +10%. Only one company returned more than
20%.
New royalty agreement for webcasting & copyright firms: SoundExchange, a nonprofit royalty collecting organization associated with the Recording Industry Association of America (RIAA) agreed this past week to a new deal regarding royalty rates for webcasting. Under the new agreement, large commercial webcasters will pay up to 25% of their revenue to copyright holders – well below the 70% that could have been imposed under an earlier deal. While the deal was initially agreed to by three smaller Internet radio webcasters, Pandora Media, the third largest radio site (according to Alexa), also indicated it would sign on to the agreement.
Online Media companies lead financing: Two online media companies – Pandora (Internet Radio) and QuickPlay (Mobile Video) have secured the largest financing transactions thus far in July ($35 million and $12 million respectively). Total capital raised so far in July is $66.1 million through eight transactions, averaging $8.3 million per transaction. June closed with $180 million in financing on 36 transactions. The averages for the months of May (excluding the Facebook transaction) and June were $6.4 million and $4.7 million, respectively.
A weak price performance week: The companies in our universe had weak stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 30 companies showing negative returns on the week. Gravity (NasdaqGM: GRVY) led the group with a 33% return, while GungHo (3765-OSE) had the worst return, dropping 26.4% in the week.
ES el. komercijos statistiniai duomenys, 2011 m.Saulius Dackys
Pateikiame ES institucijų, renginiui Digital Agenda Assembly 2012, surinktus statistinius duomenis apie bandrą situaciją el. komercijos rinkoje. Juose puikiai matosi kokioje vietoje yra el. komercija Lietuvoje. Džiugu tai, kad turime kur dirbti.
The Role of Technology For Patient Outcomes in East Africa — Slides from East...IHS
These slides were presented by Farah Ramadan at the East Africa Healthcare Investment Summit 2012 in Kampala, Uganda on 19th April 2012.
The presentation was part of a panel discussion with government and industry representatives, examining strategies for sustained growth and profitability in the healthcare arena in East Africa.
This presentation focused specifically on the role of technology as an enabling force for better patient outcomes in East Africa.
In the first week of May, $38.9 million was raised on seven deals. Over the last three months, four sectors, Media, Ad Network, Video, and Social Network, have seen the most activity, bringing in a combined $209 million on 25 transactions. Overall, capital market activity has trended downwards on the back of a declining economy and lower valuations. With any sustainable certainty and stability in the public markets, we would expect to see activity pick up as more institutions participate in private placements. Seven companies raised $38.9 million in the first week of May. EveryZing, a company in the video search sector, raised $8.3 million, followed by Gist at $6.8 million. All transactions except one (Resonate Networks) were greater than or equal to $5 million. The companies in our universe had mixed stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 22 companies showing positive returns on the week. Tree.com (TREE-NASDAQ) led the group with a 27.5% return, while Beyond Commerce, Inc. (BYOC-OTCBB) had the worst return, dropping 21.8% in the week.
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Several of the largest MMOG companies reported their Q4/08 results over the past week; including Shanda, Netease,
and The9. The MMOG market continued to grow on a sequential basis in Q4.
10 01 05 Web 2.0 Weekly Special EditionDavid Shore
TOP FIVE DEALS OF 2009
The Top Five: Despite over 400 transactions in 2009, it wasn’t hard choosing our Top Five transactions for 2009 (with a little bit of massaging). Our Top Five transactions are: Facebook’s $200 million D round, Twitter’s $100 million E round, the $2.25 billion acquisition of Skype, the almost $1 billion in financing/M&A for Social Gaming companies (including Zynga, Playdom and Playfish), and the incredible per unique visitor value ascribed in the financing for location-based social networking company Gowalla.
• Facebook raises $200 million D round: In May 2009, Facebook announced a new financing round – raising $200 million from Digital Sky Technologies. The transaction gave Digital Sky a 1.96% stake, valuing Facebook at $10 billion. This financing brought the company’s total to $678.2 million. This was also the largest financing we recorded in 2009.
• Twitter raises $100 million E round: The third largest financing round in 2009 belonged to Twitter – a $100 million Series E in September 2009. The financing reportedly valued Twitter at $1 billion – a remarkable valuation for a company that has not yet formalized a revenue model! More recently, it has been reported that Twitter was actually profitable in 2009 due to the $25 million in search deals it signed in October with Google and Microsoft.
• Skype is acquired for $2.025 billion: By far the largest overall transaction in our database in 2009 was the acquisition of a majority position (65%) in Skype from eBay for $2.025 billion – announced in September 2009. The transaction was completed in November 2009. eBay had purchased Skype for $4.0 billion in 2005.
• Social Gaming financing activity reaches ~$1 billion (Zynga, Playfish, Playdom, etc.): Perhaps the hottest sector overall in 2009 was Social Gaming. This segment of the Web 2.0 market had the third highest number of deals (39) and generated almost $1 billion in financing/M&A activity – the second highest total overall (Figure 1). Three transactions in particular stand out in the social gaming space – the $400 million acquisition of Playfish (by Electronic Arts, November 2009), the $180 million financing of Zynga (Series C, December 2009, by Digital Sky), and the $43 million first round of financing for Playdom (New Enterprise lead, November 2009, Series A). There has been much speculation as to how the larger social gaming companies will proceed, with potential IPO or further strategic M&A most likely.
• Hottest new sector? Location-based social networks (Foursquare, Gowalla, etc.). Unique visitor value skyrockets: Financing activity for location-based social networks really heated up late in 2009. While the total financing raised in 2009 was quite small (~$15 million), the hype surrounding location-based SNS companies was substantial. In our opinion, this was highlighted by the $8.4 million December Series B financing for Gowalla. The reported valuation of $28.4 million implies a value of $568 for each of its 50,000 users (Figure 2). That compares to a $40 per user value we estimate for the Foursquare financing in September.
*Capital Market Activity: *The month of May closed with 20 financings
totalling $327.1 million led by the $200 million investment by Digital Sky
Technologies in Facebook. Excluding the Facebook transaction, May would have
been the lowest month in CY2009. The Facebook transaction aside, four
transactions (One Net Ent., Cyberplex, Peer39 and OpenX), were greater than
or equal to $10 million. The average value in May is $15.6 million (and $6.4
million excluding the Facebook transaction), greater than the average value
for April of $6.2 million on 21 financings. The March average was $6.5
million on 24 financings. If you are aware of any companies that have
recently raised money that are not on our list, please send me an email to
have them added to our database.
*Price Performance: *Most of the companies in our universe had positive
stock price performances over the past week (for stocks with prices greater
than $1) (Figure 12), with 29 companies showing positive returns on the
week. GameOn co. Ltd (3812-TSE) led the group with a 28.2% return, while
eolith Co. Ltd. (A041060-KOSE) had the worst return, dropping 13.7% in the
week.
Enhancing Performance with Globus and the Science DMZGlobus
ESnet has led the way in helping national facilities—and many other institutions in the research community—configure Science DMZs and troubleshoot network issues to maximize data transfer performance. In this talk we will present a summary of approaches and tips for getting the most out of your network infrastructure using Globus Connect Server.
Alt. GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using ...James Anderson
Effective Application Security in Software Delivery lifecycle using Deployment Firewall and DBOM
The modern software delivery process (or the CI/CD process) includes many tools, distributed teams, open-source code, and cloud platforms. Constant focus on speed to release software to market, along with the traditional slow and manual security checks has caused gaps in continuous security as an important piece in the software supply chain. Today organizations feel more susceptible to external and internal cyber threats due to the vast attack surface in their applications supply chain and the lack of end-to-end governance and risk management.
The software team must secure its software delivery process to avoid vulnerability and security breaches. This needs to be achieved with existing tool chains and without extensive rework of the delivery processes. This talk will present strategies and techniques for providing visibility into the true risk of the existing vulnerabilities, preventing the introduction of security issues in the software, resolving vulnerabilities in production environments quickly, and capturing the deployment bill of materials (DBOM).
Speakers:
Bob Boule
Robert Boule is a technology enthusiast with PASSION for technology and making things work along with a knack for helping others understand how things work. He comes with around 20 years of solution engineering experience in application security, software continuous delivery, and SaaS platforms. He is known for his dynamic presentations in CI/CD and application security integrated in software delivery lifecycle.
Gopinath Rebala
Gopinath Rebala is the CTO of OpsMx, where he has overall responsibility for the machine learning and data processing architectures for Secure Software Delivery. Gopi also has a strong connection with our customers, leading design and architecture for strategic implementations. Gopi is a frequent speaker and well-known leader in continuous delivery and integrating security into software delivery.
State of ICS and IoT Cyber Threat Landscape Report 2024 previewPrayukth K V
The IoT and OT threat landscape report has been prepared by the Threat Research Team at Sectrio using data from Sectrio, cyber threat intelligence farming facilities spread across over 85 cities around the world. In addition, Sectrio also runs AI-based advanced threat and payload engagement facilities that serve as sinks to attract and engage sophisticated threat actors, and newer malware including new variants and latent threats that are at an earlier stage of development.
The latest edition of the OT/ICS and IoT security Threat Landscape Report 2024 also covers:
State of global ICS asset and network exposure
Sectoral targets and attacks as well as the cost of ransom
Global APT activity, AI usage, actor and tactic profiles, and implications
Rise in volumes of AI-powered cyberattacks
Major cyber events in 2024
Malware and malicious payload trends
Cyberattack types and targets
Vulnerability exploit attempts on CVEs
Attacks on counties – USA
Expansion of bot farms – how, where, and why
In-depth analysis of the cyber threat landscape across North America, South America, Europe, APAC, and the Middle East
Why are attacks on smart factories rising?
Cyber risk predictions
Axis of attacks – Europe
Systemic attacks in the Middle East
Download the full report from here:
https://sectrio.com/resources/ot-threat-landscape-reports/sectrio-releases-ot-ics-and-iot-security-threat-landscape-report-2024/
Elevating Tactical DDD Patterns Through Object CalisthenicsDorra BARTAGUIZ
After immersing yourself in the blue book and its red counterpart, attending DDD-focused conferences, and applying tactical patterns, you're left with a crucial question: How do I ensure my design is effective? Tactical patterns within Domain-Driven Design (DDD) serve as guiding principles for creating clear and manageable domain models. However, achieving success with these patterns requires additional guidance. Interestingly, we've observed that a set of constraints initially designed for training purposes remarkably aligns with effective pattern implementation, offering a more ‘mechanical’ approach. Let's explore together how Object Calisthenics can elevate the design of your tactical DDD patterns, offering concrete help for those venturing into DDD for the first time!
Transcript: Selling digital books in 2024: Insights from industry leaders - T...BookNet Canada
The publishing industry has been selling digital audiobooks and ebooks for over a decade and has found its groove. What’s changed? What has stayed the same? Where do we go from here? Join a group of leading sales peers from across the industry for a conversation about the lessons learned since the popularization of digital books, best practices, digital book supply chain management, and more.
Link to video recording: https://bnctechforum.ca/sessions/selling-digital-books-in-2024-insights-from-industry-leaders/
Presented by BookNet Canada on May 28, 2024, with support from the Department of Canadian Heritage.
Removing Uninteresting Bytes in Software FuzzingAftab Hussain
Imagine a world where software fuzzing, the process of mutating bytes in test seeds to uncover hidden and erroneous program behaviors, becomes faster and more effective. A lot depends on the initial seeds, which can significantly dictate the trajectory of a fuzzing campaign, particularly in terms of how long it takes to uncover interesting behaviour in your code. We introduce DIAR, a technique designed to speedup fuzzing campaigns by pinpointing and eliminating those uninteresting bytes in the seeds. Picture this: instead of wasting valuable resources on meaningless mutations in large, bloated seeds, DIAR removes the unnecessary bytes, streamlining the entire process.
In this work, we equipped AFL, a popular fuzzer, with DIAR and examined two critical Linux libraries -- Libxml's xmllint, a tool for parsing xml documents, and Binutil's readelf, an essential debugging and security analysis command-line tool used to display detailed information about ELF (Executable and Linkable Format). Our preliminary results show that AFL+DIAR does not only discover new paths more quickly but also achieves higher coverage overall. This work thus showcases how starting with lean and optimized seeds can lead to faster, more comprehensive fuzzing campaigns -- and DIAR helps you find such seeds.
- These are slides of the talk given at IEEE International Conference on Software Testing Verification and Validation Workshop, ICSTW 2022.
Encryption in Microsoft 365 - ExpertsLive Netherlands 2024Albert Hoitingh
In this session I delve into the encryption technology used in Microsoft 365 and Microsoft Purview. Including the concepts of Customer Key and Double Key Encryption.
Generative AI Deep Dive: Advancing from Proof of Concept to ProductionAggregage
Join Maher Hanafi, VP of Engineering at Betterworks, in this new session where he'll share a practical framework to transform Gen AI prototypes into impactful products! He'll delve into the complexities of data collection and management, model selection and optimization, and ensuring security, scalability, and responsible use.
DevOps and Testing slides at DASA ConnectKari Kakkonen
My and Rik Marselis slides at 30.5.2024 DASA Connect conference. We discuss about what is testing, then what is agile testing and finally what is Testing in DevOps. Finally we had lovely workshop with the participants trying to find out different ways to think about quality and testing in different parts of the DevOps infinity loop.
Pushing the limits of ePRTC: 100ns holdover for 100 daysAdtran
At WSTS 2024, Alon Stern explored the topic of parametric holdover and explained how recent research findings can be implemented in real-world PNT networks to achieve 100 nanoseconds of accuracy for up to 100 days.
zkStudyClub - Reef: Fast Succinct Non-Interactive Zero-Knowledge Regex ProofsAlex Pruden
This paper presents Reef, a system for generating publicly verifiable succinct non-interactive zero-knowledge proofs that a committed document matches or does not match a regular expression. We describe applications such as proving the strength of passwords, the provenance of email despite redactions, the validity of oblivious DNS queries, and the existence of mutations in DNA. Reef supports the Perl Compatible Regular Expression syntax, including wildcards, alternation, ranges, capture groups, Kleene star, negations, and lookarounds. Reef introduces a new type of automata, Skipping Alternating Finite Automata (SAFA), that skips irrelevant parts of a document when producing proofs without undermining soundness, and instantiates SAFA with a lookup argument. Our experimental evaluation confirms that Reef can generate proofs for documents with 32M characters; the proofs are small and cheap to verify (under a second).
Paper: https://eprint.iacr.org/2023/1886
PHP Frameworks: I want to break free (IPC Berlin 2024)Ralf Eggert
In this presentation, we examine the challenges and limitations of relying too heavily on PHP frameworks in web development. We discuss the history of PHP and its frameworks to understand how this dependence has evolved. The focus will be on providing concrete tips and strategies to reduce reliance on these frameworks, based on real-world examples and practical considerations. The goal is to equip developers with the skills and knowledge to create more flexible and future-proof web applications. We'll explore the importance of maintaining autonomy in a rapidly changing tech landscape and how to make informed decisions in PHP development.
This talk is aimed at encouraging a more independent approach to using PHP frameworks, moving towards a more flexible and future-proof approach to PHP development.
Dev Dives: Train smarter, not harder – active learning and UiPath LLMs for do...UiPathCommunity
💥 Speed, accuracy, and scaling – discover the superpowers of GenAI in action with UiPath Document Understanding and Communications Mining™:
See how to accelerate model training and optimize model performance with active learning
Learn about the latest enhancements to out-of-the-box document processing – with little to no training required
Get an exclusive demo of the new family of UiPath LLMs – GenAI models specialized for processing different types of documents and messages
This is a hands-on session specifically designed for automation developers and AI enthusiasts seeking to enhance their knowledge in leveraging the latest intelligent document processing capabilities offered by UiPath.
Speakers:
👨🏫 Andras Palfi, Senior Product Manager, UiPath
👩🏫 Lenka Dulovicova, Product Program Manager, UiPath
FIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdf
09 07 07 Web 2.0 Weekly
1. SOFTWARE & SERVICES 7 JULY 2009
DAVID SHORE, CFA, MBA 416.860.6784
WEB 2.O WEEKLY david.shore@researchcapital.com
Arun Thomas (Associate) 416.860.7666
ADVERTISING MANAG EMENT COMPANY HI-MEDIA ACQUIRES ADLINK INTERNET MEDIA FO R $41
MILLION
IS T H I S T H E BE GI N NI NG OF BA C KW A RD I NT EG R A T IO N?
W e have often discussed in our various publications about the crossover of old media (TV, Radio, and Newspapers)
into new media platforms such as blogs/micro-blogs, online video, online radio, mobile media, etc. Alongside this
crossover, the role of the traditional advertising/media buying companies is changing rapidly. W ith the ability to target
advertisements (on the new platforms) to very specific demographics and user base, the new media platform has
helped create the analytics sector that provides data to media buyers or in themselves distribute advertisements
through their affiliate networks using the data (or intelligence) they have amassed.
W e believe that the acquisition of AdLink (an internet marketing solutions company) by a large online publisher such
as Hi-Media validates the potential of a backward integration in the online media and advertising sector. W ith the
sector being in the very early stages, these business models or operating models are far away from maturity.
Nevertheless, we expect to see many more such partnerships or integrations in the future.
A quiet week on the capital raise front: Last week being marked by holidays in both Canada and United States, it
was extremely quiet on the capital raise front. Total capital raised for the first few days of July is $4 million on a
single transaction. Hi-Media’s acquisition of AdLink Internet Media (July 6, 2009) for $41 million was the other
transaction of note. June closed with $180 million on 36 transactions. It was led by Sugar Inc. raising $16.0 million,
closely followed by Tumri ($15 million), Boku ($13 million), W imba ($12 million), and Grab Networks ($12 million).
The averages for the months of May (excluding the Facebook transaction) and June were $6.4 million and $4.7
million, respectively.
Financing Activity Last Three Months
200.0 7.0
6.4
180.0
6.0
160.0
5.0
140.0
4.7
120.0
4.0 4.0
(US$m)
(US$m)
100.0
3.0
80.0
60.0
2.0
40.0
1.0
20.0
0.0 0.0
May-09 (excl FB) Jun-09 Jul-09
Total Average
Price performance for the week was mixed: The companies in our universe had a mixed stock price performance
over the past week (for stocks with prices greater than $1) (Figure 6), with 22 companies showing positive returns on
the week. VOIS Inc. (VOIS:OTCBB) led the group with a 30.9% return, while Tencent Holdings Ltd. (700-SEHK) had
the worst return, dropping 7.4% in the week.
This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer.
For further disclosures, please see last page of this report.
w w w . r e s e a rc h c a p i t a l . c o m
T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550
2. Page 2
THE WEB 2.0 UNIVERSE
Ninety public Web 2.0 companies identified: Our W eb 2.0 universe contains 90 companies, with a combined market cap
of ~$53 billion (Figure 1). The average market cap for the group is ~$588 million (but a median of only $50.0 million), with
average trailing revenue of $152.2 million (median $54.1 million). The companies are also generally profitable, with a
median EBITDA margin of 13.2%. On a valuation basis, the overall average is 4.6x trailing revenue (median 1.4x) and
10.1x trailing EBITDA (median 9.2x). Fourteen of the companies have more than 500 employees.
C omparable C ompany A nalys is > W eb 2.0
Trading Current U S D Market U S D LT M To tal US D L TM T otal E BITD A T E V/LT M TE V /L TM
C om pany Nam e L TM as o f T icker E xchange Currenc y HQ Price C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E BITDA E mplo yees
Acce le riz e N ew Me dia, Inc. 3 /31 /200 9 AC LZ OT C B B USD U nited S ta tes 0 .50 1 3.8 4.1 (4 .4) NM 4.6x - 11
Actoz S of t C o., L td. 3 /31 /200 9 A0 527 90 K OS E KR W S o uth K orea 25 100 16 9.2 91. 0 1 9.8 21 .7% 1.5x 7. 1x NA
AQ Inte ractive , Inc. 3 /31 /200 9 38 38 TSE J PY J apan 69 100 3 9.6 65. 1 4 .1 6 .3% 0.2x 2. 5x NA
As s ocia ted Media H oldings Inc. 6 /30 /200 7 AS MH OT C P K USD U nited S ta tes 0 .02 0 .9 0.1 (2 .3) NM 1 9.2 x - 3
B igstring Co rp. 3 /31 /200 9 BS GC OT C B B USD U nited S ta tes 0 .03 1 .8 0.1 (2 .0) NM 4 3.2 x - 4
B e tawave Corpora tion 3 /31 /200 9 B W AV OT C B B USD U nited S ta tes 0 .10 2 .9 8.4 (1 2.6) NM - - 53
B e yond Commerce, Inc. 3 /31 /200 9 B Y OC OT C B B USD U nited S ta tes 0 .44 1 9.8 7.1 (9 .5) NM 3.5x - 69
B right T hings plc 9 /30 /200 8 AIM:B G T AIM G BP U nited K ingdom 0 .02 4 .8 0.3 (1 .8) NM 1 7.6 x - 9
B roa dW ebAs ia Inc. 9 /30 /200 8 BW BA OT C P K USD U nited S ta tes 0 .23 1 9.5 0.0 (4 .6) NM - - 46
C D C C orp. 3 /31 /200 9 C HIN .A N as da qG S USD H ong K ong 1 .43 15 1.7 389 .9 3 0.8 7 .9% 0.4x 5. 4x NA
C ha ngyou. com Limite d 3 /31 /200 9 C Y OU N as da qG S USD C hina 38 .83 2,1 35.7 222 .5 13 5.1 60 .7% 8.8x 14 .4x 6 28
C hina G ate wa y C orpo ra tion 9 /30 /200 8 CGWY OT C P K USD U nited S ta tes 0 .02 0 .3 6.7 (6 .6) -9 8.9% 0.0x - 37
C hine s e G amer In ternation al 3 /31 /200 9 G T S M:308 3 GT SM TWD T aiwan 446 .00 1,1 37.4 56. 0 3 1.4 56 .0% 1 9.1 x 34 .2x NA
C ornerW orld C orporation 1 /31 /200 9 C WR L OT C B B USD U nited S ta tes 0 .06 3 .9 1.3 NM NM 4.1x - NA
C yberplex Inc. 3 /31 /200 9 T S X:C X TSX C AD C ana da 1 .57 8 7.5 70. 1 7 .2 10 .3% 1.2x 11 .5x NA
DADA S pA 3 /31 /200 9 C M:D A CM E UR Ita ly 6 .23 14 0.7 234 .0 3 4.2 14 .6% 0.8x 5. 6x 5 78
DXN Holdings B hd 2 /28 /200 9 DXN KL SE MY R Ma la ys ia 0 .37 2 4.1 78. 0 1 0.7 13 .7% 0.5x 3. 7x NA
Dibz Inte rnation al, Inc. NA DIB Z OT C P K USD U nited S ta tes 0 .00 0 .0 NA NM NM - - NA
DigitalP o st Inte ra ctive , Inc. 3 /31 /200 9 DG LP OT C B B USD U nited S ta tes 0 .04 3 .2 0.7 (2 .6) NM 6.6x - 7
DigitalT own, In c. 2 /28 /200 9 DG T W OT C B B USD U nited S ta tes 2 .05 5 5.5 NM (3 .0) NM - - 3
Dolph in D igital Me dia, In c. 3 /31 /200 9 DP DM OT C B B USD U nited S ta tes 0 .40 2 0.7 0.8 (3 .7) NM 2 8.0 x - NA
E o lith C o. L td. 1 2/31 /200 8 A0 410 60 K OS E KR W S o uth K orea 795 .00 4 5.4 14. 5 (3 .4) -2 3.6% 3.3x - NA
E xte ns ions , Inc. 3 /31 /200 9 E XT I OT C P K USD U nited S ta tes 0 .20 8 .9 NM NM NM - - 2
F inan cia l Media G roup, Inc. 2 /28 /200 9 F NG P OT C B B USD U nited S ta tes 0 .00 0 .2 7.2 2 .4 34 .1% - - 22
F luid Mus ic Ca nada, Inc. 3 /31 /200 9 T S X:F MN TSX C AD U nited S ta tes 0 .65 2 9.4 5.0 (6 .9) NM 4.1x - NA
F ro gs te r Interactive P ictu re s AG 1 2/31 /200 8 FRG XT R A E UR G ermany 11 .82 3 8.7 3.2 (6 .1) NM 1 1.5 x - NA
G a ma nia Digital E ntertainmen t C o., L td. 3 /31 /200 9 61 80 GT SM TWD T aiwan 59 .30 27 3.1 125 .6 2 0.9 16 .6% 2.0x 12 .0x NA
G a me On C o L td. 3 /31 /200 9 38 12 TSE J PY J apan 112 900 11 4.9 77. 5 1 8.3 23 .7% 0.7x 2. 9x NA
G e oS e ntric O yj 3 /31 /200 9 G E O1 V H LS E E UR F inland 0 .04 5 0.0 5.9 (1 5.2) NM 7.8x - 1 08
G iant Intera ctive G roup, Inc. 3 /31 /200 9 GA NY S E USD C hina 7 .85 1,7 72.9 218 .9 NM NM - - 1, 570
G iga Media Ltd. 3 /31 /200 9 G IG M N as da qG S USD T aiwan 5 .45 29 7.1 183 .6 NM NM 1.2x - 7 51
G ravity C o., L td 9 /30 /200 8 GR VY N as da qG M USD S o uth K orea 1 .04 2 8.9 38. 5 7 .4 19 .2% - - 6 36
G ree, Inc. 6 /30 /200 8 T S E : 363 2 TSE J PY J apan 7 400 1,7 40.4 30. 9 1 1.1 36 .0% - - NA
G u ngH o O nline E n tertainment, In c. 3 /31 /200 9 37 65 OS E J PY J apan 252 000 30 4.0 108 .5 1 9.5 18 .0% 2.5x 14 .1x NA
H anbitS of t, Inc. 3 /31 /200 9 A0 470 80 K OS E KR W S o uth K orea 4 620 7 9.7 54. 4 (1 4.6) -2 6.8% 1.2x - NA
IAC /In terActiveC orp. 3 /31 /200 9 IAC I N as da qG S USD U nited S ta tes 16 .14 2,4 35.8 1 ,40 6.4 4 2.6 3 .0% 0.4x 12 .9x 3, 200
IAS E nergy, Inc. 1 /31 /200 9 IAS C.A OT C B B USD C ana da 0 .19 1 3.3 0.0 (0 .8) NM - - NA
is ee media Inc. 3 /31 /200 9 IE E T S XV C AD C ana da 0 .08 3 .5 1.5 (4 .7) NM 1.8x - NA
J umbu ck E ntertainment P ty Ltd. 1 2/31 /200 8 AS X:J MB AS X AU D Au s tra lia 0 .38 1 4.9 14. 2 5 .3 37 .2% 0.7x 1. 9x 72
J umpT V Inc. 3 /31 /200 9 T S X:J T V TSX C AD C ana da 0 .75 7 3.5 18. 1 (1 1.8) -6 5.2% 3.5x - 2 37
K A B D is tribu tion In c. 3 /31 /200 9 T S X:K AB TSX C AD C ana da 0 .65 7 8.3 70. 9 8 .4 11 .9% 1.2x 9. 9x NA
K in gs oft Co . Ltd. 3 /31 /200 9 38 88 S E HK HKD C hina 5 .85 81 8.9 129 .1 5 2.0 40 .3% 6.0x 14 .8x 2, 271
Lin go Media Co rporation 3 /31 /200 9 T S XV : LM T S XV C AD C ana da 1 .19 1 3.2 0.9 (1 .5) NM 1 3.7 x - NA
Live World Inc. 3 /31 /200 9 LV WD OT C P K USD U nited S ta tes 0 .04 1 .2 11. 4 (0 .0) -0 .4% 0.0x - NA
Lo okS mart, Ltd. 3 /31 /200 9 LOOK N as da qG M USD U nited S ta tes 1 .23 2 1.0 60. 7 (3 .8) -6 .3% - - 90
Magn itude Information S ys tems Inc. 3 /31 /200 9 MA G Y OT C B B USD U nited S ta tes 0 .01 4 .1 0.1 (3 .1) NM - - 14
Mixi, Inc. 3 /31 /200 9 21 21 TSE J PY J apan 590 000 95 5.2 126 .9 4 5.0 35 .4% 6.6x 18 .6x NA
Mode rn Times G roup Mtg AB 3 /31 /200 9 MT G B OM S EK S weden 222 1,8 60.5 1 ,71 2.0 26 2.3 15 .3% 1.4x 9. 2x 2, 969
MOK O.mobi L imited 1 2/31 /200 8 MK B AS X AU D Au s tra lia 0 .07 4 .8 1.1 (2 .3) NM 3.2x - NA
Myriad G rou p AG 1 2/31 /200 8 MY R N SWX C HF S witz erla nd 5 9 2.0 40. 0 0 .8 1 .9% 2.6x - 4 05
N E OW IZ G ames C orpo ra tion 1 2/31 /200 8 A0 956 60 K OS E KR W S o uth K orea 32 150 26 6.5 195 .0 5 2.4 26 .8% 1.3x 4. 9x NA
N etDrago n W ebS oft, Inc. 3 /31 /200 9 77 7 S E HK HKD C hina 5 .64 38 4.6 86. 9 3 4.4 39 .5% 2.9x 7. 3x 2, 426
N ete as e.com I nc. 3 /31 /200 9 NT E S N as da qG S USD C hina 33 .30 4,2 76.7 470 .5 30 5.8 65 .0% - - NA
N eXplore Co rpora tion 9 /30 /200 7 N XP C OT C P K USD U nited S ta tes 0 .60 3 3.5 NM (4 .9) NM - - 19
N gi G roup Inc. 3 /31 /200 9 24 97 TSE J PY J apan 38 300 .00 5 0.0 93. 0 1 1.2 12 .0% 0.1x 0. 8x NA
N orthgate Te chno logies L imited 3 /31 /200 9 59 005 7 BS E INR India 36 .65 2 6.3 115 .6 (2 7.1) -2 3.5% 0.2x - NA
Open T e xt Corp. 3 /31 /200 9 OT E X N as da qG S USD C ana da 35 .44 1,8 65.0 782 .6 19 9.2 25 .5% 2.5x 9. 7x 3, 400
Openwave S ys tems Inc. 3 /31 /200 9 OP W V N as da qG S USD U nited S ta tes 2 .23 18 5.8 197 .2 (2 .1) -1 .0% 0.4x - 6 30
P e rfect W orld C o., Ltd. 3 /31 /200 9 PW R D N as da qG S USD C hina 28 .25 1,3 74.0 228 .1 12 4.6 54 .6% 0.2x 0. 3x 2, 096
Qu epa s a C orp. 3 /31 /200 9 QP S A OT C P K USD U nited S ta tes 0 .99 1 2.6 0.1 (1 0.8) NM - - 74
OA O R B C Information S ys tems 1 2/31 /200 7 R BCI R TS USD R us s ia 0 .92 12 8.0 150 .6 1 9.7 13 .1% 0.0x 0. 2x NA
S h anda Interactive E ntertainme nt L td. 3 /31 /200 9 S N DA N as da qG S USD C hina 52 .52 3,5 06.7 570 .0 26 0.9 45 .8% 0.0x 0. 1x NA
S h utte rf ly, In c. 3 /31 /200 9 S F LY N as da qG S USD U nited S ta tes 12 .98 32 6.7 215 .2 2 8.3 13 .2% 1.2x 9. 2x 5 14
S K C ommun ications Co ., Ltd. 1 2/31 /200 8 A0 662 70 K OS E KR W S o uth K orea 9 880 .00 32 6.1 181 .3 1 1.8 6 .5% 1.8x 27 .7x NA
S N AP Inte ra ctive , Inc. 3 /31 /200 9 S T VI OT C B B USD U nited S ta tes 0 .45 4 .9 3.3 0 .9 28 .0% 1.0x 3. 7x 11
S N M G lobal H oldings 9 /30 /200 8 S N MN OT C P K USD U nited S ta tes 0 .01 0 .0 2.0 (0 .7) -3 4.8% 1.1x - 33
S o cia l Media V e nures , In c. 1 2/31 /200 8 S MVI OT C P K USD U nited S ta tes 0 .25 0 .0 0.1 (0 .1) -6 0.5% 0.0x - NA
S o cia lwis e, Inc. 3 /31 /200 9 S C LW OT C B B USD U nited S ta tes 0 .62 2 6.9 0.0 (4 .8) NM - - NA
S o hu. com Inc. 3 /31 /200 9 S OH U N as da qG S USD C hina 58 .28 2,2 30.0 460 .0 20 0.5 43 .6% 4.0x 9. 3x 3, 197
S park N etworks , Inc. 3 /31 /200 9 LOV AME X USD U nited S ta tes 2 .38 4 8.9 54. 3 1 1.8 21 .7% 0.9x 4. 2x 1 83
S pectrumDN A, Inc. 3 /31 /200 9 S P XA OT C B B USD U nited S ta tes 0 .25 1 2.2 0.1 (2 .6) NM - - 7
T en cent Ho ldin gs L td. 3 /31 /200 9 70 0 S E HK HKD C hina 87 .55 20,3 83. 9 1 ,20 3.4 57 6.6 47 .9% 1 8.4 x 38 .4x 6, 194
T he P arent C ompany 8/2/2008 K IDS .Q OT C P K USD U nited S ta tes 0 .03 0 .7 112 .0 (1 3.5) -1 2.0% 0.2x - 3 47
T he 9 L imited 1 2/31 /200 8 N CT Y N as da qG S USD C hina 9 .19 24 6.5 249 .9 8 4.2 33 .7% - - NA
T he S treet.com, Inc. 3 /31 /200 9 TSCM N as da qG M USD U nited S ta tes 2 .01 6 1.5 67. 0 1 .9 2 .9% - - 3 10
T otal S po rt Online A S 3 /31 /200 6 T OS O OT C NO NOK N orwa y 0 0 .1 2.1 (1 .0) -5 0.6% 4.6x - 16
T ree.C om, Inc. 3 /31 /200 9 TR EE N as da qG M USD U nited S ta tes 9 .21 9 9.4 215 .6 (1 3.3) -6 .2% 0.4x - 7 00
U nis erve C ommunications Co rp. 2 /28 /200 9 T S XV : US S T S XV C AD C ana da 0 .08 1 .7 22. 4 0 .1 0 .2% 0.2x - NA
U nited Online Inc. 3 /31 /200 9 U NT D N as da qG S USD U nited S ta tes 6 .21 51 9.0 811 .2 17 7.3 21 .9% 1.0x 4. 5x 1, 469
U OMO Media , Inc 1 /31 /200 9 U OMO OT C B B USD C ana da 0 .14 1 1.6 0.6 (0 .5) -7 8.2% 1 8.8 x - NA
V a lueC lick Inc. 3 /31 /200 9 V C LK N as da qG S USD U nited S ta tes 10 85 1.4 591 .7 10 5.5 17 .8% 1.3x 7. 1x 1, 189
V O IS , In c. 3 /31 /200 9 V OIS OT C B B USD U nited S ta tes 1 1 1.9 0.0 (1 .1) NM - - 4
W ebze n Inc. 3 /31 /200 9 W ZE N N as da qG M USD S o uth K orea 4 4 2.1 22. 6 (0 .4) -1 .9% - - 3 14
W iz za rd S of twa re Co rpora tion 3 /31 /200 9 W ZE AME X USD U nited S ta tes 0 .51 2 4.4 5.6 (5 .3) -9 4.5% 4.6x - 1 10
W orlds .com In c. 3 /31 /200 9 W DD D OT C B B USD U nited S ta tes 0 .08 3 .9 0.0 (0 .8) NM - - 1
W ynds to rm C orporation NA W YND OT C P K USD U nited S ta tes 0 .04 0 .7 NA NM NM - - NA
XIN G AG 3 /31 /200 9 O1B C XT R A E UR G ermany 30 .05 22 0.7 52. 7 1 6.5 31 .2% 3.2x 10 .3x 2 39
Y e dan gOnline Co rp. 1 2/31 /200 7 A0 527 70 K OS E KR W S o uth K orea 8 990 .00 11 1.1 54. 0 1 1.6 21 .6% 2.2x 10 .4x NA
Y n k K orea Inc. 1 2/31 /200 8 A0 237 70 K OS E KR W S o uth K orea 6 690 .00 2 8.1 11. 2 1 .2 10 .5% 2.4x 23 .2x NA
ZipLo cal Inc. 3 /31 /200 9 T S XV : ZIP T S XV C AD C ana da 0 .01 0 .3 2.6 (2 .0) -7 8.3% 0.6x - NA
H igh 20,3 83. 9 1 ,712 .0 57 6.6 65 .0% 4 3.2 x 38 .4x 6,1 94
Lo w 0 .0 0.0 -27.1 -9 8.9% 0.0x 0. 1x 1
A vera ge 587.9 152.2 33.2 6.7% 4 .6x 10. 1x 746
Median 5 0.0 54. 1 0 .9 13 .2% 1.4x 9. 2x 3 12
Figure 1. Web 2.0 Universe Summary
Source. Capital IQ
3. Page 3
C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G )
July starts with an acquisition in the ad network sector: Last week being marked by holidays in both Canada and
United States, it was extremely quiet on the capital raise front. Total capital raised for the first few days of July is $4
million on a single transaction. Hi-Media’s acquisition of AdLink Internet Media (July 6, 2009) for $41 million was the other
transaction of note. June closed with $180 million on 36 transactions. It was led by Sugar Inc. raising $16.0 million, closely
followed by Tumri ($15 million), Boku ($13 million), W imba ($12 million), and Grab Networks ($12 million). The averages
for the months of May (excluding the Facebook transaction) and June were $6.4 million and $4.7 million, respectively.
Financing Activity Last Three Months
200.0 7.0
6.4
180.0
6.0
160.0
5.0
140.0
4.7
120.0
4.0 4.0
(US$m)
(US$m)
100.0
3.0
80.0
60.0
2.0
40.0
1.0
20.0
0.0 0.0
May-09 (excl FB) Jun-09 Jul-09
Total Average
Figure 2. Financings, Last Three Months
Source. Company reports
StyleCaster raises $4 million: Partly due to the holidays in North America, last week was very quiet on the capital raise
front, except for vertical community company, StyleCaster, raising $4 million. For additional details, see Figures 23 and 24
(at end of note).
4. Page 4
Financing & M/A Summary - Last Three Months
250.0
200.0
150.0
Jul-09
(US$m)
Jun-09
May-09
100.0
50.0
0.0
AdEx Media
Cyberplex
Jaxtr
OneTXT
EveryZing
blueKiwi Software
VoxPop
I Love Rewards
Mo'Minis
StyleCaster
Newser LLC
OpenX
OLX
RingRevenue
YuMe
Grab Networks
Sense Networks
Azuki Systems
MojoPages
Medialets
Resonate Networks
Loop'd Network
MashLogic
Gather
LiquidPlanner
AdLink Internet
One Net
Sugar Inc.
Goojet SAS
AdMeld Inc.
beeTV
BlogHer Inc.
Gist
Fuhu Inc.
Crowdcast
GROU.PS
Cliqset
ClickFuel
Inigral
TodaCell
StumbleUpon
Boku
Peer39
Nokeena
TimeBridge
DocuSign
Taomee
Animoto
GameGround
my6sense
Yapta
Picaboo
Glubble
Facebook
Zoosk
eRepublik
Tumri
Imeem
WonderHill
AdWhirl
Wimba
Figure 3. Capital Market Activity, Last Three Months
Source. Company reports
Social Network remains the most active sector in dollars raised, while Ad Network remains the most active in
number of transactions: Following recent trends, Social Networks as a sector saw the most activity in dollars raised
($240.5 million), largely attributed to the $200 million investment by Digital Sky Technologies in Facebook. However, it
was the Ad Network sector that saw the most transactions (13), raising $117.2 million (Figure 4). The comment/reputation
sector has the next highest totals, closely followed by Gaming ($25.8 million). Overall, the following sectors continue to
generate the most capital activity over the last few months: Ad Network, Media, Gaming, and Social Networks.
5. Page 5
Capital Market Activity by Sector - Last Three Months
300.0
250.0
200.0
(US$m)
150.0
240.5
100.0
117.2
50.0
29.0 25.8 23.0 18.2 17.5 17.0 16.5 16.4 13.3 13.0 12.0
0.0 8.0 6.8 6.3 4.0 1.0 1.0 0.0
Comment/Reputation
Mobile Payment
Communities
Gaming
Enterprise
Collaboration
Media
Mobile
Publishing
Widget
Blog
Infrastructure
Search
Mobile Ad
SMS/Voice
Social Networks
Video
Virtual World
Aggregation
Ad Network
Vertical
# companies
11 13 1 5 2 5 5 3 3 2 2 1 2 2 1 1 1 1 1 0
Figure 4. Capital Market Activity, by Sector, Last Three Months
Source. Company reports
C A P I T A L M A R K E T S A C T I V I T Y (P R I C E P E R F O R M A N C E )
Web 2.0 index outpaces NASDAQ recovery: Our W eb 2.0 index (market-cap weighted) essentially mirrored the
performance of the NASDAQ composite index from mid-2008 until recently. However, the index has recently had a much
stronger recovery relative to the NASDAQ index (Figure 5).
6. Page 6
Web 2.0 Index Price Performance
120
110
100
90
80
70
60
50
40
8
8
8
8
8
8
8
8
8
8
8
8
8
9
9
9
9
9
9
9
9
9
9
9
9
9
9
7/0
1/0
4/0
8/0
1/0
5/0
9/0
3/0
7/0
0/0
4/0
8/0
2/0
5/0
9/0
2/0
6/0
2/0
6/0
0/0
3/0
7/0
1/0
5/0
8/0
2/0
6/0
/0
/2
/0
/1
/0
/1
/2
/1
/2
/1
/2
/0
/2
/0
/1
/0
/1
/0
/1
/3
/1
/2
/1
/2
/0
/2
/0
07
07
08
08
09
09
09
10
10
11
11
12
12
01
01
02
02
03
03
03
04
04
05
05
06
06
07
^COMP - Share Pricing Index: Web 2.0 X (Market Cap Weights) - Index Value
Figure 5. Web 2.0 Price Performance
Source. Capital IQ
A mixed price performance week: The companies in our universe had a mixed stock price performances over the past
week (for stocks with prices greater than $1) (Figure 6), with 22 companies showing positive returns on the week. VOIS
Inc. (VOIS:OTCBB) led the group with a 30.9% return, while Tencent Holdings Ltd. (700-SEHK) had the worst return,
dropping 7.4% in the week.
7. Page 7
1 Week P rice P erformance
V OIS , Inc. 30.9%
Frogs ter Interac tive Pictures A G 19.4%
NetDragon WebS oft, Inc. 12.1%
Webz en Inc. 10.5%
G ree, Inc. 9.6%
Lingo Media Corporation 8.2%
Y edangOnline Corp. 7.0%
Ngi G roup Inc. 6.7%
Chines e G amer International 6.2%
G ameOn Co Ltd. 5.1%
A c toz S oft Co., Ltd. 4.6%
HanbitS oft, Inc. 4.3%
K ings of t Co. Ltd. 2.8%
Modern Times G roup Mtg A B 2.3%
G ama nia Digital Entertainment 2.2%
IA C/InterA ctiveCorp. 1.3%
LookS mart, Ltd. 0.8%
S K Communications Co., Ltd. 0.7%
Eolith Co. Ltd. 0.6%
XING A G 0.6%
Mix i, Inc. 0.2%
NEOWIZ G ames Corporation 0.2%
DigitalTow n, Inc. 0.0%
S park Netw orks , Inc. -0.8%
DA DA S pA -1.1%
Y nk K orea Inc. -1.6%
TheS treet. com, Inc. -2.9%
A Q Interac tive, Inc. -2.9%
Open Tex t Corp. -3.0%
Tree.Com, Inc. -3.4%
United Online Inc. -4.5%
Gravity Co., Ltd -4.6%
CDC Corp. -4.7%
G iant Interactive G roup, Inc. -4.8%
S handa Interactive -5.7%
My riad G roup A G -5.8%
Perf ect World Co., Ltd. -6.0%
Openw ave S y s tems Inc. -6.7%
Neteas e. com Inc. -7.4%
Tencent Holdings Ltd. -7.4%
-10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
Figure 6. 1-Week Price Performance
Source. Capital IQ
8. Page 8
INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)
K ey Developments
C ompany Headline Notes
MOK O.mobi Limited (AS X: MKB ) MO K O . mobi Limited L aunc hes on S econd I ndian C arrier MO K O . mo bi Limited has la unched on I dea C ellular I ndia and ha s bec ome the s econd I ndia n ca rrier launch for MO K O .mobi this month.
MO K O . mo bi is loc alis ed for an Ind ian a udience and will be developed to incl ude c omplimenta ry content that the c arrier is involved in,
including Idea's s pons orship of the M umba i I ndians IP L c rick et tea m. T he Idea vers ion of MO K O . mobi is bas ed on a user-pay s subs cription
a nd premium a ctivity busines s model, where MO K O . mobi is paid a share of all revenues from the mobile opera tor. T he launch includes a
free tria l period and rev enues are ex pected to begin during the s econd quarter of the new fina ncial y ear.
G am ania Digital E ntertainmen t C o. , G a mania D igita l E ntertainment C o., L td., 1.00 (TW D ), G a ma nia Di gita l E ntertainment C o. , L td., 1. 00 (TW D ), Ca s h D ividend, J un-29-2009
L td. (G TS M: 6180) Ca s h D ivi dend, J un-29-2009
S hutterfly, Inc . (Nas daqG S : S FL Y) S hutterfly Inc . E xpands its W edding S ta tionery C ollection S hutterfly I nc . a nnounced new a dditions to its wedding stati onery collec tion, including brida l showe r inv ita tions, sa ve-the-da tes, tha nk y ou
cards and addres s labels. R anging from clas sic to modern, photo or non-photo d esigns , S hutterfly's new weddin g s tationery offers s omething
for every bride-to-be. S hutterfly's new wedd ing s ta tionery includes 46 photo and non-photo s a ve-the-da tes in two ca rd s izes , either 5'x7' or
4.5'x5. 5', a nd 40 non-photo brida l shower inv ita tions . Many of the sav e-the-dates and invita tions include matching wedding thank you c ards
a nd a ddres s labels to c omplete the perfect look . Always on trend, S hutterfly 's wedding stationery offerings include not only bol d colors lik e
lime, orange and bright pink , but also s oft pink s , blues and greens for the more traditi ona l bride. T here is also a wide v ariety of silhouettes
a nd nature-inspired themes for thos e planning des tina tion weddings. For the modern bride, fres h new patterns upda ted with on-trend colors
offer a si mple choice. T he new s ty les are from popular des igners including S ta cy Claire B oyd, E rin C ondren, T ag & Co. a nd W hitney E n glish.
As with all S hutterfly merchandis e, the wedding s tationery c ollection is supported by the company's c us tomer s ervi ce including one of the turna round t
U nis erve C ommun ic ation s C orp. Unis erve C ommunic ations C orp. Appoints Aziz P ira ni as Unis erve C ommunications C orp. a ppointed Az iz P irani as a director of the compa ny effective J une 17, 2009. M r. P irani brings to U niserve
(T S XV: U S S ) Direc tor of the C ompa ny E ffectiv e J une 17, 2009 over 30 y ears of experience in the I T S erv ices a nd T elecommunica tions indus try .
X ING AG (XTR A: O1B C) X ing to S top E xpa ns ion in C hina Xing will probably consider s topping expans ion in s ome countries lik e C hina.
A c celeriz e New Media, In c. Acceleriz e N ew Media Inc. Announces the L aunc h of I ts Accelerize New M edia I nc. announced the la unch of its la tes t financia l portal. W hile allowing a dvertis ers to rea ch a targeted a udience, the
(OT CB B: A CL Z) L ates t F inancia l P ortal company miss ion is to educ ate the inves tment community about C hinese public c ompanies listed on U .S . a nd interna tiona l exc ha nges and
become a lea ding destination for C hinese inv estment opportunities. C hines eP ublicC ompanies. c om provides inves tors with news a nd
informa ti on: News-P res s relea s e s yndic atio n s ervices for public companies. O pi nion-Independent, unbias ed covera ge written by in-hous e
fina nc ia l profes siona ls an d s elect third parties . R es earch-Acc es s to indus try and company res ea rch reports designed to s hed light on under-
followed C hinese public c omp anies. E duc ation-E ducational content co vering C hines e polic ies , economics, a nd other topics neces sa ry to
ma k e informed inves tment decisions . Acceleriz e intends to genera te revenues by implementing the following progra ms : P erformance B ased
Ma rk eting-C hineseP ubl icC ompa nies . com will feature the produc ts and s ervic es of leading legal and a ccoun ting firms interested in obta ining
Chines e c lients through dis pla y advertising, targeted lead generation, a nd e-ma il ma rk eting.
F luid Mus ic C anada, Inc. (T S X:FMN) F luid Mus ic C a na da I nc. Announces Ma na gement F luid Mus ic C a na da I nc. anno unced tha t it held its a nnua l a nd s pecia l meeting on J une 29, 2009. At the meeting, s ha reholders elected the
Changes following individua ls as directors of the corpora tion: Lorne K . Abony , Direc tor a nd CE O , J us tin F . B eck ett, D irector, R ic ha rd Weil ,
Independent D irector, J a mes La nthier, D irec tor and C hief F inancia l O fficer, Ha rvey S olursh, Independent D irector a nd Ana toly P lotkin,
Independent D irector. M r. R iv kin will cease to hold the office of P res ident of the c orporation effecti ve June 29, 2009. H owever, the compa ny
a nnounced that it ha s entered into a cons ulting agreement with Mr. R ivk in purs ua nt to which he will continue to provide cons ulting s ervices to
the corporation.
T he9 L imited (Nas daqG S :NC TY) T he9 Limited a nnounc ed dela y ed 20-F filing O n 07/01/2009, T he9 L imited announced tha t they will be una ble to file their next 20-F by the deadline requi red by the S E C .
2K S po rts Inc .; T enc en t Holdings Ltd. 2K S ports I nc. P a rtners with T encent H oldings Ltd. to 2K S ports I nc. announced its pa rtners hip with T encent H oldings Limited to c o-de velop the online v ersio n of N B A 2K a nd distribute it to C hina
(S E HK : 700) B ring N B A 2K O nli ne to As ia a nd other k ey ma rkets. 2K S ports has s ecu red a multi-year lic ense to devel op the online s imula tion game, which will inc lude all of the N B A
tea ms , as well as current a nd retired N B A players .
P erform Lo cal, Inc .; Perform L ocal, T ree. Com, I nc. (Nas da qG M: T R E E ) a cquired home T ree. Com, I nc. (N asda qG M: T R E E ) a cquired home improv ement profes sionals directory serv ice of P erform Loca l, Inc . on J uly 1, 2009. T he
Inc., Home Improvement Profes s io nals improvement profes s iona ls direc tory s ervice of P erform fina nc ia l terms of the transa ction were not dis cl osed.
Directo ry S ervic e; T ree.Com, Inc . L ocal, Inc.
(Nas daqG M:TR E E )
T ree. Com, I nc. (N asda qG M: T R E E ) co mpleted the acquis ition of home improv ement profes sionals directory serv ice of P erform Loca l, I nc.
on J uly 1, 2009.
IB 3 Networks , Inc. (OT CB B: IB NW ); IB 3 N etwork s Announc es W eb S ite R edes ign P roject for IB 3 Network s I nc. and its wholly owned s ubsidiary iB eam S olutions L LC a nnounc ed that it has been contrac ted to redesi gn the web s ite a nd
iB eam S o lu tions L LC F eeC orp E nvironmenta l S ervices online pres ence for F eeC orp E nvironmental S ervices of O hio. iB ea m S olutions ha s been reta ined to redes ign F eeC orp's compa ny web s ite
a nd to c reate a templa te that can be used as a second s ite for a new divis ion. T he new s ite will inc lude an up-to-date look a nd feel, c ustomer
friendly na vigation, a nd a reas where customers a nd pros pective cus tomers c an a s k ques tions a nd interact.
DigitalT own , Inc . (OT CB B :D G TW ) Digita lT own I nc . Announces E xecutiv e C hanges O n J uly 2, 2009, the board of direc tors of Digita lT own I nc. a cc epted the res igna tion of J ohn W itham a s chief financial officer. E ffec tiv e J uly 2,
2009, Mr. P a ul G ramstad was appointed a s c hief financi a l officer. Mr. G ra ms ta d is c urrently serv ing a s controller and principa l a ccounting
officer of the compa ny. M r. G rams tad prev iously s erved a s ac ting C F O of the c ompany from O c tober 5, 2007, to S eptember 16, 2008.
Modern Times G ro up Mtg AB (OM: MTG Modern Times G roup Mtg A B S ucc ess fully R efina nces its Modern Times G roup Mtg AB announced the s uc ces sful refinancing of its ex isting S E K 3. 0 billion loa n fac ility. T he ex isting loan, whic h wa s
B) E xis ting S E K 3.0 B illion L oa n F a cility a rranged in August 2008, was due for repa y ment in April 2010. T he new S E K 3.0 billion three year term loan, which was overs ubs cribed, ha s
been arranged by DnB NO R B ank AS A, N ordea B ank AB (public ), S k andina vis k a E ns ki lda B a nk en A B (public) and S v ensk a H a ndelsba nken
AB (public ) a s Ma ndated Lead Arra ngers a nd by S wedba nk A B (public) as J oint L ea d Arranger. T he S E K 3. 0 billion credit fac ility was
a nnounced on A ugust 27, 2008, being put in plac e in order to finance the ac quis ition of N ova Telev isa B ulga ria , a s well a s to provide
continued financia l flexibility for the G roup to make further inves tments and enhance sha reholder returns .
Neteas e. com Inc. (Nas daqG S : NT E S ) Netea se. c om I nc. F ails to O pen Firs t W ow G ame S erv ers Netea se. com Inc. fa iled to open the first WO W ga me s ervers in J une as scheduled as the company ha s not y et rec eive approva l from the
on T ime Minis try of C ulture for the c ontent of the W O W ga me. T he company in Ma y tha t they will open the first W O W game s ervers in la te J une that
have been ended by T he 9, the former C hinese operator of the game. T he a pprov al proc es s for ga me products rela ted to a foreign game
company will be sus pended if the foreign c ompany is involv ed in a n a rbitra tion or la ws uit filed by a Chines e c ompany, s o a s to protec t the
interes ts of the country's ga me enterpris es , a cc ording to the G eneral A dminis tration of P ress and P ublica tion of C hina .
K ing s oft Co . Ltd. (S E HK: 3888) K ings oft, Q ihoo C oopera tes in Antivirus B usines s K ingsoft C o. Ltd. announced tha t it would ca rry out the deepe ned c oopera tion with Q i hoo C orporation. T he two pa rties a greed to l a unch
Q ihoo-cus tomiz ed K ings oft Internet S ec urity antivirus software a nd K ings oft-cus tomiz ed Q ihoo 360 S afe W eb browsers to cons umers, and
help promote eac h other's products on their own webs ites . T he c oopera ti on is ex pected to boost the ex pa nsion of the K in gsoft Internet
S ecurity s oftwa re. E arlier, Q ih oo la rgely fa cilita ted the populariz a ti on of K a s pers ky L ab's anti-virus s oftware, too.
Figure 7. Key Developments
Source. Capital IQ
9. Page 9
VALUATION
Online Gaming companies lead market-cap charts: Twelve companies in our W eb 2.0 universe top US$1 billion in
market capitalization (Figure 8). Fifty-eight of the 90 companies have market caps under US$100 million, with 23 under
US$10 million. Online gaming companies dominate the top of the list, led by Tencent Holdings with a market cap over
US$18 billion.
M a r k e t C a p (U S D m )
T e n c e n t H o ld in g s L td .
N e te a s e . c o m In c .
S h a n d a In te r a c tiv e E n te r ta in me n t L td . 3506.7
IA C /In te r A c tiv e C o r p. 2435 .8
S o h u . c o m In c . 2230.0
C h a n g y o u . c o m L imite d 2135 .7
O pe n T e x t C o r p. 1865.0
M o d e r n T ime s G r o u p M tg A B 1860.5
G ia n t In te r a c tiv e G r o u p, In c . 17 72.9
G r e e , In c . 1740.4
P e r f e c t W o r ld C o . , L td .
C h in e s e G a me r In te r n a tio n a l 11 37.4 1374.0
M ix i, In c . 9 55.2
V a lu e C lic k In c . 851.4
K in g s o f t C o . L td . 818.9
U n ite d O n lin e In c . 519.0
N e tD r a g o n W e bS o f t, In c . 384.6
S h u tte r f ly , In c . 32 6.7
S K C o mmu n ic a tio n s C o . , L td . 32 6.1
G u n g H o O n lin e E n te r ta in me n t, In c . 304.0
G ig a Me d ia L td . 297.1
G a ma n ia D ig ita l E n te r ta in me n t C o . , L td . 273.1
N E O W IZ G a me s C o r p o r a tio n 266.5
T h e 9 L imite d 24 6.5
X IN G A G 220.7
O pe n w a v e S y s te ms In c . 185.8
A c to z S o f t C o . , L td . 169.2
C D C C o r p. 151.7
D A D A S pA 140.7
O A O R B C In f o r ma tio n S y s te ms 128.0
G a me O n C o L td . 114.9
Y e d a n g O n lin e C o r p. 111.1
T r e e . C o m, In c . 99 .4
M y r ia d G r o u p A G 92.0
C y be r ple x In c . 87.5
H a n bitS o f t, In c . 79.7
K A B D is tr ibu tio n In c . 78.3
J u mpT V In c . 73.5
T h e S tr e e t. c o m, In c . 61 .5
D ig ita lT o w n , In c . 55.5
G e o S e n tr ic O y j 50.0
N g i G r o u p In c . 50.0
S p a r k N e tw o r k s , In c . 48.9
E o lith C o . L td . 45.4
W e b z e n In c . 42.1
A Q In te r a c tiv e , In c . 39.6
F r o g s te r In te r a c tiv e P ic tu r e s A G 38.7
N e X p lo r e C o r p o r a tio n 33.5
F lu id Mu s ic C a n a d a , In c . 29 .4
G r a v ity C o . , L td 28 .9
Y n k K o r e a In c . 28 .1
S o c ia lw is e , In c . 26 .9
N o r th g a te T e c h n o lo g ie s L imite d 26 .3
W iz z a r d S o f tw a r e C o r p o r a tio n 24 .4
D X N H o ld in g s B h d 24 .1
L o o k S ma r t, L td . 21.0
D o lp h in D ig ita l M e d ia , In c . 20.7
B e y o n d C o mme r c e , In c . 19.8
B r o a d W e bA s ia In c . 19.5
J u mbu c k E n te r ta in me n t P ty L td . 14.9
A c c e le r iz e N e w M e d ia , In c . 13.8
IA S E n e r g y , In c . 13.3
L in g o Me d ia C o r p o r a tio n 13.2
Q u e pa s a C o r p. 12.6
S pe c tr u mD N A , In c . 12.2
V O IS , In c . 11.9
U O M O Me d ia , In c 11.6
E x te n s io n s , In c . 8.9
S N A P In te r a c tiv e , In c . 4.9
MO K O . mo bi L imite d 4.8
B r ig h t T h in g s plc 4.8
Ma g n itu d e In f o r ma tio n S y s te ms In c . 4.1
W o r ld s . c o m In c . 3.9
C o r n e r W o r ld C o r p o r a tio n 3.9
is e e me d ia In c . 3.5
D ig ita lP o s t In te r a c tiv e , In c . 3.2
B e ta w a v e C o r p o r a tio n 2.9
B ig s tr in g C o r p. 1.8
U n is e r v e C o mmu n ic a tio n s C o r p. 1.7
L iv e W o r ld In c . 1.2
A s s o c ia te d Me d ia H o ld in g s In c . 0.9
T h e P a r e n t C o mpa n y 0.7
W y n d s to r m C o r p o r a tio n 0.7
Z ipL o c a l In c . 0.3
C h in a G a te w a y C o r p o r a tio n 0.3
F in a n c ia l M e d ia G r o u p, In c . 0.2
T o ta l S po r t O n lin e A S 0.1
S N M G lo ba l H o ld in g s 0.0
S o c ia l M e d ia V e n u r e s , In c . 0.0
D ibz In te r n a tio n a l, In c . 0.0
0 500 1 ,000 1,500 2,000 2,500 3,000 3,5 00 4,000
Figure 8. Market Cap Ranking
Source. Capital IQ
TEV/Revenue (LTM) averages 4.6x: The overall average TEV/Revenue (LTM) multiple for our group is 4.6x (versus 5.3x
last week) (Figure 9). One company trades at more than 35x revenue – Bigstring Corp. (OTCBB:BSGC) at 43.2x – closely
followed by with Dolphin Digital (OTCBB:DPDM) at 28.0x. The median is only 1.8x. Note that we exclude multiples greater
than 50x. Thirty-five companies have multiples under 1.9x.